The bad news: Employers are facing a critical workforce shortage in the not too distant future, it’s that simple. There are fewer younger workers entering the US workforce than there are older workers leaving: in fact the ratio is close to 1:3.
The good news: The definition of retirement is changing, and more aging baby boomers are defying tradition by working longer.
But, how many employers are really prepared to attract, manage, develop and retain older workers, which requires re-thinking last century stereotypes about older people?
According to William J. Rothwell, professor of workforce education and development at Penn State University, labor shortages are predicted for all industries, from construction and manufacturing, to technology and health care. And historically, many employers begin offering early retirement incentives to their older employees thinking they will save money by reducing the numbers of their senior, often more highly paid workers.
However, research shows this is a typical myth associated with aging, according to findings by another Penn State professor, Diane Spokus, a faculty member in health policy and administration. She exposed such myths surrounding older workers left over from the last century, based on a generation now long retired and mostly gone.
Myth #1:
It costs more to retain older workers than it does to recruit younger workers.
Fact:
Many older workers may receive higher salaries, but when hidden replacement costs are factored in for the higher turnover of younger workers during their early years of employment, the actual cost savings is in keeping with experienced employees.
Myth #2:
The costs for health and other benefits are higher for older workers.
Fact:
Today’s older workers have fewer acute illnesses, while younger workers have more dependents. So in reality, overall benefits may work out to be the same for older and younger workers.
In essence, the U.S. would actually be better off by capturing the work experiences of Baby Boomers and passing them on to their successors.
So employers, are you ready to meet these challenges? Here’s some suggestions to get you started:
First: revise human resources policies to provide flexible work schedules and job sharing opportunities for older workers;
Second: design training programs with the older adult in mind;
Third: educate managers and staff members about how to remain sensitive to age diversity issues in an effort to overcome the many wrongheaded myths;
Fourth: learn how to provide better ergonomic workplace designed to accommodate age-related changes;
Fifth: initiate mentoring and coaching programs that provide opportunities to pass on the wisdom of more experienced workers to the next generations.
